Classmates.com 2006 Annual Report Download - page 12

connectivity. We host the majority of our data center services in third-party co-location facilities and outsource all of our bandwidth and
managed modem services.
We license a number of our software applications and components, including the applications for our billing, customer support, advertising
and database systems, our client and server applications, and the applications for our accelerator services. These licenses generally have terms
ranging from several years to perpetual.
PROPRIETARY RIGHTS
Our trademarks, patents, copyrights, domain names and trade secrets are important to the success of our business. We principally rely upon
patent, trademark, copyright, trade secret and contract laws to protect our proprietary technology. We have filed numerous patent applications
relating to a variety of business methods and technologies. We generally enter into confidentiality or license agreements with our employees,
consultants and corporate partners, and generally control access to, and distribution of, our technologies, documentation and other proprietary
information. We consider our United Online, NetZero, Juno, Classmates and MyPoints trademarks to be very valuable assets, and we have
registered all of these trademarks in the United States and certain of them in some other countries.
INTERNATIONAL OPERATIONS
We have foreign operations in India and Germany. We have a significant number of employees located in our India office. Our operations
in India primarily handle email customer support, product development and quality assurance. A portion of our outsourced customer support is
also based in India. Our operations in Germany provide community-based networking services in Sweden, Germany and France. The revenues
generated by our international operations constitute an immaterial portion of our total revenues and we do not generate revenues directly from
our operations in India. For additional information relating to geographic segments, see Note 10—“Segment Information” of the Notes to the
Consolidated Financial Statements, which appears in Part II, Item 8 of this Annual Report on Form 10-K, and for information regarding risks
associated with our foreign operations, see “Item 1A—Risk Factors.”
EMPLOYEES
At December 31, 2006, we had 1,006 employees, 753 of which were located in the United States, 243 of which were located in Hyderabad,
India and 10 of which were located in Europe. We had 533 employees in product development, including all employees located in our
Hyderabad office, 158 employees in general and administrative, 234 employees in sales and marketing, and 81 employees in network operations.
None of these employees are subject to a collective bargaining agreement, and we consider our relationships with employees to be good.
AVAILABLE INFORMATION
Our corporate Web site is www.unitedonline.com. On this Web site, we make available, free of charge, our annual, quarterly and current
reports, changes in the stock ownership of our directors and executive officers, our code of ethics and other documents filed with, or furnished
to, the SEC as soon as reasonably practicable after such documents are filed with, or furnished to, the SEC.
The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, NW,
Washington, DC 20549. The public may obtain information on the operation of the Reference Room by calling the SEC at 1-800-SEC-
0330. The
SEC maintains an Internet site that contains reports, proxy and information statements and other information filed electronically at www.sec.gov.
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